Thursday, September 6, 2007

Deal to take AVP private terminated

by Unknown at 3:08 PM

Shamrock Holdings terminated its agreement to purchase AVP, Inc. today after a major shareholder indicated it would vote against the merger. The $37 million buyout would have given shareholders about $1.23 per share — barely above market value.

AVP has been struggling to turn a profit since Len Armato rebuilt the tour and took it public in 2001.

Net income:
  • 01-02: -2.95M
  • 02-03: -0.85M
  • 03-04: -1.10M
  • 2004: -2.87M (8 months)
  • 2005: -8.96M
  • 2006: -0.34M
  • 2007 (Q2): -1.24M
Depending on how well the events do July-September, the AVP may yet show a profit in 2007. I'm guessing this would probably give it a significant boost in investor interest, especially with the 2008 Olympics less that a year away and American teams poised to do very well.

Despite the financial shortcomings, I think most folks would agree the tour is looking better than ever. The challenge now is to get the level of interest up. Hot scene in Top Gun 2?



Anonymous said...

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- Steve